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Corporate Tax Holiday Could Spur Earnings Manipulation

Zone(s): USA ¦ Sector(s): Tax
[2 June 2014, accountingTODAY]On 29 May,By Michael Cohn, Editor-In-Chief, Accountingtoday.Com, from Washington DC: The push for a corporate tax holiday to encourage repatriation of an estimated $2.1 trillion in foreign profits seems to have gained traction again, thanks to a recent proposal from former President Bill Clinton, but such an idea could provide multinational companies with the incentive for earnings manipulation, according to a new study.

Clinton suggested earlier this month granting U.S. multinationals a tax holiday on their repatriated profits as long as they used a portion of the repatriated funds to buy bonds to rebuild the nation’s infrastructure. The idea has drawn support from both sides of the aisle in Congress.

Read more at:
www.accountingtoday.com/news/tax_research/corporate-tax-holiday-could-spur-earnings-manipulation-70789-1.html